SpaceX faces House Energy Committee demand to tour its AI data centers in Memphis

SpaceX faces House Energy Committee demand to tour its AI data centers in Memphis

News ClipCNBC·Memphis, Shelby County, TN·7/30/2026

The House Energy Committee is demanding records and a tour of SpaceX's xAI data centers in Memphis, Tennessee, due to concerns over environmental pollution, electricity strain, and community health. This follows a lawsuit filed against xAI regarding allegedly illegal, air-polluting turbines at the facilities. Public opposition to data centers is growing across the U.S.

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SpaceXxAI
Gov: House Committee on Energy and Commerce, Department of Justice, Governor of New Jersey

Rep. Frank Pallone (D-NJ), the ranking member on the House Committee on Energy and Commerce, has demanded that SpaceX CEO Elon Musk provide a tour and records for his company's xAI data centers and power plants in and around Memphis, Tennessee. The demand, outlined in a letter to Musk, highlights growing concerns among Americans about the impact of data centers and the expansion of AI infrastructure on electricity prices, grid stability, environmental quality, noise pollution, property values, and jobs.

Pallone specifically criticized SpaceX and Musk, alleging a "disregard for the health and well-being of local communities." He stated that the company has created a "massive health risk" by using "off-grid gas turbines" to power its Colossus and Colossus 2 AI facilities without proper permits and pollution controls. These data centers, which house advanced Nvidia processors, were originally built by xAI before its acquisition by SpaceX and are central to the company's AI ambitions.

The committee's demand comes amidst a backdrop of increasing public opposition to data center construction across the U.S., with a recent Gallup survey indicating that seven in 10 Americans oppose such developments in their local areas. Furthermore, xAI is currently facing a lawsuit, filed by environmental advocates and the NAACP in Mississippi, challenging the company's use of allegedly illegal and air-polluting turbines. The Trump Administration's Department of Justice has moved to intervene in this lawsuit, seeking to assist xAI in its defense. Separately, New Jersey Gov. Mikie Sherrill recently enacted legislation to ensure data center operators contribute fairly to electricity costs, rather than shifting burdens to residents and businesses.